Mike Novogratz: „It is inevitable that Bitcoin will overtake gold“.
Mike Novogratz, the CEO of Galaxy Digital, sees Bitcoin (BTC) on track to catch up with and even surpass the market capitalisation of gold, thanks to a steady increase in interest from institutional and retail investors.
In an interview with the CNBC programme, Novogratz noted that the adoption of the Bitcoin Bank market-leading cryptocurrency is „moving much faster“ than he had predicted. Rather, he himself would be shocked at the pace at which new investors are joining.
Novogratz, who has been involved in Bitcoin since 2013, when the cryptocurrency still had a meagre price of 100 US dollars, is accordingly optimistic in the interview and believes that his previous price forecast of 60,000 US dollars was still too conservative. He had derived this value from the fact that Bitcoin could reach just under 10 % of the market capitalisation of gold.
„At the beginning of the year, my price forecast was still 60,000 US dollars, which would have corresponded to just under 10 % of gold,“ as the crypto expert explains. He continues, „However, it was clear to me that as soon as Bitcoin hits 10%, we would all say that the 20% was also possible, and after that we would target 50% before it eventually goes to 100%.“
As Bitcoin would have increasingly established itself as „digital gold“ during the crisis, Novogratz is now finally convinced that the cryptocurrency will catch up with and even overtake the market value of the precious metal:
„In my opinion, it is inevitable that Bitcoin will first have the same and then a higher market capitalisation than gold.“
Current estimates put the market value of gold at just under 10.7 trillion
US dollars, while Bitcoin currently stands at just 1.1 trillion US dollars. US dollars.
However, the cryptocurrency could soon catch up, as some experts predict that Bitcoin will take more and more market share from the precious metal, which would accelerate the convergence of the two stores of value all the more. Analysts at JPMorgan Chase had already noted in December 2020 that the current upward trend of the cryptocurrency will be to the disadvantage of gold, at least in the short term.